The 2017 COLA (Cost-of-Living Adjustments) increase will be 0.3% based on the percentage increase of Consumer Price Index for Urban Wage Earners and Clerical Workers of the third quarter of this year. The 0.3 percent cost-of-living adjustment is about a $4 monthly benefit increase for the average retiree, or about $48 per year.
The 2015-2016 COLA (Cost-of-Living Adjustments) saw no increase as the inflation measure used by the Social Security Administration showed a negative inflation rate. However, benefits cannot be decreased despite a negative inflation measurement. COLA impacts benefits to about 59 million social security recipients, 1.96 million military retirees and 4 million disabled veterans. The 2015 COLA (Cost-of-Living Adjustments) was 1.7% which was slightly higher than the previous year’s increase of 1.5%.
2017 Cola Effective & Payment Dates:
- Retired military veterans, VA rates for compensation and pension for disabled veterans and surviving families will be effective December 1, 2016 and will be reflected on the first check to be paid on December 31, 2016.
- Social Security benefits will be effective beginning with the December 2016 benefits, which are payable in January 2017.
- Federal SSI payment levels will be effective for payments made for January 2017.
COLA (Cost-of-Living Adjustments) are for the following individuals or areas:
- Retired Military Veteran
- Disabled Veterans – See VA Disability Rate Tables
- Veterans’ Pension Benefits – Veterans Pension Rate Tables
- Survivor Benefit Annuitants – Survivors’ Pension Rate Tables
- Surviving Families of Veterans – Parents’ Dependency and Indemnity Compensation (DIC) Tables
- Social Security recipients
- Federal Civilian Retirees
- Supplemental Security Income (SSI)
- Eligibility for Medicare Extra Help and Medicaid
- Federal & State food and housing assistance programs
How COLA is Determined
The Cost-of-Living-Adjustments (aka Cost-of-Living Allowance) is determined by the Bureau of Labor Statistics’ Consumer Price Index (CPI-W). It is based on the percentage increase of the CPI-W from the 3rd quarter of the previous year versus the current year’s 3rd quarter (July, August, and September).
Veterans who retire during the current calendar year will receive a temporary partial COLA due to already receiving a military pay raise in January.
- The COLA increase is only set at the CPI-W if the increase is less than 2 percent.
- If inflation is between to 2 to 3 percent than COLA is set at 2 percent.
- If the CPI-W is greater than 3 percent than COLA is set at 1 percent below the CPI-W.
|Third quarter total||702.73|
|Average (rounded to the nearest 0.001)||234.242|
|Inflation According to the CPI-W||–|
Third quarter 2014 will be used for the three month average comparison as the law dictates that the SSA use the same three months of “the last year in which COLA became effective”. There was no COLA increase in 2015.
For August and September 2016, the index increased 0.3% prior to seasonal adjustment.
|Money & Finance||2017 Cola|
|2017 VA Disability Rates||2017 Social Security|